Treasury Bond Market in Turmoil as Prices Plunge, Sparking Debate on Debt Crisis vs. Fed Policy Blunders

Treasury bond market has crashed recently, with prices falling dramatically. This safe asset is suddenly volatile.

Bearish investors argue too much government debt has flooded the market, causing a supply glut. This could indicate a looming debt crisis.

Bullish voices counter it's about expectations for growth and interest rates, not just supply. The Fed messed up forecasts.

Situation is reminiscent of bond vigilantes in the 1980s punishing government spending with selloffs. Unclear if that's happening now.

Fed wants higher rates for longer, but unclear if bond traders will listen. Question is who will win the bickering match.